Demand Response Valuation Frameworks Paper

Author:

Heffner, G. Global Energy Associates

Year:

2009

Abstract:

Most approaches for quantifying the value of DR focus on changes in utility system revenue requirements based on resource plans with and without DR. This “utility centric” approach does not assign any value to DR impacts that lower energy and capacity prices, improve reliability, lower system and network operating costs, produce better air quality, and provide improved customer choice and control. Proper valuation of these benefits requires a different basis for monetization.
This report provides an updated perspective on the DR valuation framework. It includes an introduction and four chapters that address the key elements of demand response valuation, a comprehensive literature review, and specific research recommendations.